Chief Justice John Marshal wrote, in the Supreme Court ruling in McCulloch v. Maryland (1819), “That the power to tax involves the power to destroy; that the power to destroy may defeat and render useless the power to create . . . are propositions not to be denied.” Yet for the last 196 years, people have repeatedly tried to deny those propositions.
The latest example involves the Supreme Court’s pending ruling on the same-sex marriage issue will affect the non-profit status of religious institutions, such as colleges and universities. Many people seem to deny that taxing such institutions would have any nefarious effects, much less “destroy” them. Many other—more knowledgeable—understand the destructive implications for religious organizations and consider it a fringe benefit.
Leslie Loftis explains why religious organizations have preemptively been exempt from taxation—and why religious freedom requires they remain exempt: